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Health systems urge Senate to revamp or repeal Stark law

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at July 13, 2016

Executives of large health systems told Congress on Tuesday that an anti-kickback law could hinder value-based payment models.

Doctors and others pushed members of the Senate Finance Committee to repeal or revamp the physician self-referral law that prohibits doctors from referring Medicare patients to hospitals, labs and colleagues with whom they have financial relationships, unless they fall under certain exceptions. No intent of wrongdoing is required to prove liability, and offenses carry potential civil monetary penalties.

The committee’s hearing follows the release of a Congressional white paper last month that noted that the Stark law has created “a minefield for the healthcare industry.”

“A total Stark repeal would not only help health systems do what we need to do, but precisely what [lawmakers] have asked us to do, which is focus on what’s best for patients and transform our outdated fee-for-service system to a value-based care system.”

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